Checking won't affect your credit score
Checking won't affect your credit score
Access your monthly free credit report, monitor changes, track credit health effortlessly.
Helps you to take action for improvement in score before taking on credit and leading to better offers.
Helps you to watch out for unauthorized loans and credit cards issued against you!
Your credit score is one of the most important factors in determining how your finances will develop in the linked world of today. This three-digit number is a financial fingerprint, giving lenders, renters, and even some employers a brief overview of your creditworthiness. It represents your borrowing and repayment history.
It's in numerical terms through the credit score that depicts the extent to which you have managed the various types of credit products, including overdrafts, mortgages, credit cards, auto loans, and personal loans. For the banks and financial institutions as well as other creditors, this score is often known as the credit score and serves as the critical determinant for loan eligibility. Learn more about how credit scores impact personal loan eligibility. Generally speaking, credit scores range between 300 and 900. A score of 760 or more is considered the best for loan approval thus, the higher your score is, the greater your potential opportunity to get new credit.
A credit score is significant because it benefits the borrower and the lender in the following ways:
Evaluation of a person's creditworthiness can be done using a credit score.
Generally, the better the management of one's finances, the higher the credit scores.
Banks tend to shun lending to individuals with poor credit scores; after all, a poor credit score does indicate an untrustworthy borrower.
Poor credit score may result in higher rates of interest or loan refusal.
Other factors are taken into consideration even though the decision of giving a loan is primarily based on a credit score. Better loan terms, and reduced interest rates are found to be frequently associated with higher credit scores.
The outcome could be higher interest rates on loans with lower credit scores.
Here is an online way through which you can easily check your credit score:
Step 2: "Check your credit score" select this option.
Step 3: Enter your mobile number, email address, and full name (as per PAN card).
Step 4: Click on the 'view credit score' button.
Step 5: After this you can easily check your credit score for free.
Following are some benefits of checking your credit score periodically:
Range | Rating | Implication |
---|---|---|
800 and above | Excellent | Low-risk customers who can more easily obtain a loan with favourable terms. |
750 to 799 | Very good | Good credit history and easy approval for the credit application. |
701 to 749 | Good | Good credit history and easy approval for the credit application. |
651 to 700 | Fair | Because of their high default risk, "subprime" borrowers have a hard time getting new credit. |
300 to 650 | Bad | If applying with this level, there is a high likelihood of credit refusal; concentrate on raising your credit score. |
Your credit score depends on lots of things, all which are important and are used to calculate your credit score:
Payment history:
Largely influenced is your history of making payments on or before due dates. In contrast to timely payments that can build up your score, some late payments, defaults or skipped invoices can bring your score low.
Credit utilisation ratio:
It refers to the amount of credit that you use in relation to your entire credit limit. Experts suggest keeping your credit utilisation under 30% to keep your score healthy.
Length of credit history:
The longer you have had credit accounts, the better your credit score will be. Applying for big loans, such as a mortgage, may be easier if you start early and maintain your accounts.
Credit mix:
You should ideally have a mix of secured and unsecured credit. With experience in both forms of credit, you will be able to handle a wide variety of financial goods correctly.
Hard enquiries:
A hard inquiry is when a lender checks your credit report when you apply for a new credit card or loan. One should limit new credit applications because too many enquiries within a short period of time will decrease your credit score.
Just a few calculated actions are enough to improve your credit score: